The S&P 500 is approaching the 200-day moving average. I am sure that is something that has been pointed out in countless posts across the globe. You could make the argument that the 200-day is a sort of self-fulfilling prophecy. If everyone looks at it as though it has some sort of importance, inevitably, it will become important. Regardless of your stance on technical analysis, it is hard to argue against its efficacy here. The 200-day serves as critical support for stocks, and in some cases, resistance that is just too much to get over.
Should the important resistance level fall and stocks breakout, I have a few ideas for which stocks could be leading the way higher. I’ve put together a list of five Zacks Rank #1 (Strong Buy) stocks which are already breaking out to new highs. These stocks could be the leaders into the next all-time high for the broad market.
1800 Flowers.com (FLWS - Free Report) 1-800-FLOWERS.COM, Inc., together with its subsidiaries, provides gourmet food and floral gifts for various occasions in the United States. It operates in three segments: Consumer Floral; Gourmet Foods & Gift Baskets; and BloomNet Wire Service. The company offers a range of products, including fresh-cut flowers, floral and fruit arrangements and plants, gifts, popcorn, gourmet foods and gift baskets, cookies, chocolates, candies, wine, and gift-quality fruits, as well as balloons, candles, keepsake gifts, jewelry, and plush stuffed animals.
Earnings have propelled this stock to the next level. This is a winning streak that really started back in mid-March but accelerated following the April 30th EPS beat. Earnings estimates have followed along with the stock price, telling me this trend could be just the beginning of the upside action.
AgroFresh Solutions (AGFS - Free Report) AgroFresh Solutions, Inc. provides science-based solutions, data-driven technologies, and services to enhance the quality and extend the shelf life of fresh produce. It offers solutions in various fresh produce categories, including apples, bananas, cherries, citrus, and pears, as well as avocados, kiwifruits, melons, ornamentals, peaches and nectarines, plums, tomatoes, and others. The company supports growers, packers, and retailers by providing post-harvest solutions across the industry to enhance crop values while conserving planet's resources and reducing food waste.
This stock popped up on somebody’s radar in a big way this week. On May 18th, the stock traded 2 million shares, well above average volume that was closer to 100,000. Intraday, that took the stock up over $4 before coming back down to Earth to close under $3. Already, it looks like buyers are continuing to pile in.
Celsius Holdings (CELH - Free Report) Celsius Holdings, Inc. develops, markets, distributes, and sells functional calorie-burning fitness beverages in the United States and internationally. The company offers its beverages in various flavors, including carbonated orange, wild berry, cola, grape, kiwi-guava, and watermelon; and non-carbonated green tea raspberry/acai, green tea/peach mango, pineapple coconut, watermelon berry, and strawberries and cream, as well as sparkling grapefruit, cucumber lime, and orange pomegranate under the Celsius brand name.
This stock reported a huge EPS beat on May 12th and since then it’s been off to the races. Nearly every day since has been a green candle. The 200-day was a launching point but now that sits all the way down at $4.53 with the stock trading up over $7.40 at the time of this article.
ChannelAdvisor (ECOM - Free Report) ChannelAdvisor Corporation provides software-as-a-service (SaaS) solutions in the United States and internationally. The company's SaaS, a cloud platform that helps brands and retailers to improve their online performance by expanding sales channels, connecting with consumers around the world, optimizing their operations for peak performance, and providing actionable analytics to improve competitiveness.
ChannelAdvisor has run into some resistance here in the $12 handle. The previous 52-week high of $11.88 was broken on strong volume and the stock never looked back. Now it’s butting its head at the highs. I am going to wait for a pullback to that previous high before I pounce.
Fiverr International (FVRR - Free Report) Fiverr International Ltd. operates an online marketplace worldwide. Its platform enables sellers to sell their services and buyers to buy them. The company's platform includes approximately 200 categories in 8 verticals, including graphic and design, digital marketing, writing and translation, video and animation, music and audio, programming and technology, business, and lifestyle. Its buyers include businesses of various sizes, as well as sellers comprise a group of freelancers and small businesses.
The best word to describe this one is nuclear. This stock has rocketed higher as a huge beneficiary of the new “Stay-at-home” economy. It has more than doubled off the April lows. Its last earnings report was a big help too. It looks a little too hot to handle here. I’d wait for a retracement into the low $50s before getting back in.
There is so much money to be made in this market. If the broad index, the S&P 500, can breakout from its 200-day moving average, it should raise all the ships in the harbor. That could lead to some serious action in these breakout stocks.
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